Sparky Corporation Uses the FIFO Method of Process Costing

question 77

Multiple Choice

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150.
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Calculate the equivalent units of materials.

• A) 110,000
• B) 165,000
• C) 130,250
• D) 144,000
• E) 140,000

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Definitions:

Reflective Responding

A communication technique involving listening, then offering a mirrored response to understand and engage deeper with the speaker's message or feeling.

Broker

An individual or entity that acts as an intermediary between parties, often involved in negotiating contracts, deals, or transactions.

Rephrasing

The act of expressing the same idea or message in different words, often to clarify or simplify its meaning.

Clarification

The process of making something understood more clearly by explaining it in more detail or resolving ambiguity.